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Reshuffle in China region; new MD for Microsoft UK

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Microsoft corp logoThe unexpected news that Greater China Region (GCR) CEO Simon Leung will be leaving Microsoft has sparked an international executive reshuffle.

Ralph Haupter, area vice president for Microsoft Germany will take on the role of GCR CEO.

Microsoft UK MD Gordon Frazer is to take on the role of COO for GCR, while current GCR COO Michel van der Bel will move to head up Microsoft UK.

Haupter and van der Bel will report to Jean-Philippe Courtois, president of Microsoft International, and Frazer will report to Haupter. Microsoft said that Leung was leaving for personal and family reasons.

We are not aware of any speculation that Leung was planning to leave and he was very much in evidence during the recent launch of Windows Phone 7 in China. There is a high turnover level for Microsoft GCR CEO’s – something like 6 over the past 16 years we believe - so Leung, who has been in the role since 2008, has had a comparatively long tenure. Microsoft is not wasting any time in carrying out the reshuffle  - it will complete as soon as work visa’s can be put in place and ideally in time for the new financial year, which starts in July.

Incoming UK MD van der Bel has been with Microsoft for 13 years. Prior to his GCR COO role he held positions as VP of public sector for Microsoft International and GM of the Netherlands. His public sector experience will be useful in the UK, where according to our estimates Microsoft increased public sector revenues by 3% in its latest financial year – one of a small number of suppliers to make revenue gains in this sector (see here).  

The dynamics of the UK and GCR markets are radically different. A prime focus in GCR is dealing with sky high levels of pirate software whereas the UK is more concerned with issues of strategic fit, business value, and when and whether to upgrade Windows. However, lessons from the dynamic GCR market could inform new methods of execution in the UK. We’re hoping to meet up with van der Bel once he is in place to find out about his plans. 


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